• Think Twice: Costs Associated with Regulatory Approval for Corporate Transactions May Be Deductible
  • April 13, 2017 | Authors: Ellen McElroy; Michael D. Resnick; Bradley M. Seltzer; Amish M. Shah; H. Karl Zeswitz
  • Law Firm: Eversheds Sutherland (US) LLP - Washington Office
  • Although the cost of obtaining regulatory approval for a corporate transaction is identified as facilitative, a recent Chief Counsel Advice (CCA 2017-13-010, March 31, 2017) (the CCA) issued by the Internal Revenue Service (IRS) concluded that the costs of certain activities undertaken as part of the regulatory approval process may be non-facilitative.1 This CCA is significant because it refutes an assumption that all costs associated with facilitating the completion of a corporate transaction are non-deductible. It also serves as a reminder to carefully consider the tax treatment of corporate transaction costs.